A Delhi based MSME in the steel industry needed an overhaul of their business strategy and plan. They reoriented their Go-To-Market Strategy leveraging our Research and Consulting services.
One of our clients is a Delhi based MSME engaged in the business of manufacturing steel forgings. It has been successfully operating in the market for a long time. But changes in the market dynamics necessitated a redraft of business plan which included the following -:
- Assessing market opportunity & conducting feasibility study
- Assessing the current state of business & operations
- An independent, unbiased value chain analysis
- Go-To- Market strategy
We employed the following approach to achieve the client objective.
Solution
Market Assessment & Value Chain Analysis
- Portfolio analysis: Highlighted overdependence on the traditional auto components business which made up to an almost 65% of their annual revenue.
- Market & Regulatory landscape analysis: Highlighted critical sustainability threats across existing auto components portfolio as a result of Electric vehicles (EV) and Bharat Stage 4 (BS-4) emission norms
- Value chain analysis: Highlighted the need to move towards lighter components for the new focus area – EVs. Flagged high focus on steel forgings for existing conventional fuel vehicles.
Go-to-Market Strategy: Implementation Support
- An end-to-end recalibration of the company’s value chain across functions
- Introduced a team of EV experts to enable move to EV business. We tapped into our rich network of advisors to quickly close these key positions.
Impact
Portfolio rejig – reduced dependence on traditional auto components business from 65% to 20%
Established new strategy – EV market focus, in line with market dynamics & regulations
Value chain recalibration – move to manufacturing new light weight Al-Mg components for EVs from steel forgings for conventional fuel vehicles
Repositioning, through reengineering across functions such as sourcing, machinery, human capital and marketing
Enhancement of capabilities to become nimbler, growth-oriented and future ready with focus on emerging segments like EVs